MPs get tough on public sector executive pay, ban bonuses

Executives at semi-public sector organisations such as housing corporations and hospitals will soon no longer be eligible for bonuses now that parliament has backed a Labour party motion calling for a ban.


The PvdA believes extras which are paid for by the taxpayer are ‘inappropriate’, MP Pierre Heijnen is quoted as saying.
‘Managers who want to work in the public sector don’t need to be given extra money to do their best to deliver as good a service as possible,’ he said.
Controls
Tuesday night’s vote was the latest in a long line of efforts to introduce formal controls on public sector salaries following disquiet about large pay packages in some sectors.
MPs also voted in favour of a PvdA proposal to limit the pay of supervisory board chairmen at public sector organisations to 7.5% of the average executive pay package, while ordinary members will have a 5% limit.
In addition, heathcare institutions and ‘good causes’ will no longer be able to pay executives more than the prime minister – the so-called Balkenende standard, named after the previous PM, Jan Peter Balkenende.
For most public sector jobs, an informal limit equivalent to the prime minister’s salary of €190,000 is already standard.

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